Many successful subcontractors face a serious cash flow crisis, not because their projects are unprofitable, but because they can’t manage the timing gap between when they need to pay bills and when they get paid. This issue becomes especially critical when working with general contractors (GCs) who hold back retainage (a percentage of payments) for months, further complicating the situation. Take the example of a successful electrical contractor, he had profitable projects a

Cash Flow  is the lifeblood of any construction business. Even the most profitable projects can face crippling financial constraints if cash is not properly managed. The biggest challenge often isn’t generating revenue but keeping working capital flowing. Long payment cycles from clients, coupled with inefficient internal processes, can quickly choke your liquidity and stall growth. But what if we told you that Accounts Payable (Construction AP) the routine task of paying bi

In the fast paced construction industry, managing Accounts Payable (AP) efficiently is crucial for maintaining strong supplier...

In construction, effective management of subcontractor and supplier payments can determine the success of a project. Missed payments,...

Construction bookkeeping is more than simply numbers; it is about ensuring that every dollar spent benefits the project's success....

Contractors and construction firm owners must efficiently manage their accounts payable. Whether you're handling vendor bills, tracking...

Managing relationships with vendors well is important for any building company that wants to improve its accounts payable processes....

Are you feeling overwhelmed by the constant influx of invoices, payment deadlines, and vendor inquiries in your construction business? If so, you're not alone. Managing the accounts payable process   for a construction company can be a daunting task. But it's crucial for maintaining healthy cash flow and vendor relationships. In this article, we'll explore five proven strategies to streamline your construction accounts payable process. Also, making it more efficient, organiz

Here's a comparison table that highlights some key differences between accounts payable and receivable

In the construction industry, Accounts Payable (AP) is more than just paying bills; it’s a critical lever for controlling cash flow and maximizing profitability. Too often, contractors manage AP reactively, focusing only on paying bills when customer payments come in, leaving vendor payments to be handled later. This reactive approach is a cash flow time bomb: it jeopardizes key vendor relationships, makes you miss early payment discounts, and introduces job costing errors a

Accounts payable remains one of the most challenging aspects of construction finance. Beyond the inherent risk of errors in A/P workflows, the cost of processing invoices significantly exceeds that of other business operations. Research indicates that manually processing a single invoice from receipt to payment costs between $10 and $22  – a substantial expense that compounds with volume. This leads to a frequent question: "If we already have QuickBooks Online, do we really n

Your balance sheet is one of the most scrutinized financial statements in construction. Lenders review it before approving loans. Sureties analyze it before issuing bonds. Project owners examine it before awarding contracts. When negative liability accounts appear on your balance sheet, it raises immediate red flags that can cost you opportunities and credibility. Understanding why negative liabilities occur and how to fix them isn't just about clean bookkeeping. It's about